A voucher system is a set of procedures and approvals:
A) Designed to determine if the company is operating profitably.
B) Used almost exclusively by small companies.
C) Designed to eliminate the need for subsidiary ledgers.
D) Used to ensure that the company sells on credit only to creditworthy customers.
E) Designed to control cash disbursements and the acceptance of obligations.

Question

Quizplus · Accepted Answer

A voucher system is used to control cash disbursements and the acceptance of obligations. It involves a set of procedures and approvals for verifying and authorizing payment of invoices and other expenses. This helps to prevent fraud, errors, and unauthorized expenditures.

A Voucher System Is a Set of Procedures and Approvals